HONG KONG, June 9 /PRNewswire/ --
- Progressing at Quick Pace to Enter into Alternative Energy Sector
Hong Kong Energy (Holdings) Limited (HKEx: 987)("HKE (HOLDINGS)" or the "Company"; formerly known as J.I.C. Technology Company Limited), a wholly-owned subsidiary of HKC (Holdings) Limited ("HKC (HOLDINGS) or the "Group") (HKEx: 190), is pleased to announce that approval has been obtained from the Development and Reform Commission of Siziwang Qi for the rights to build and operate a 50MW wind power project in the region subsequent to the application made on 21 April 2008. The total investment will amount to approximately RMB 480.5 million (HK$540.2 million) which will be funded by the Company's internal resources and/or bank borrowings.
For the purpose of constructing the wind farm, the Company has entered into 2 contracts of purchasing 33 sets of wind turbine and turbine tower with an aggregate value of approximately RMB349.8 million (approximately HK$393.2 million). It is expected further contracts will be entered for acquisition of other wind power generation equipments for the project.
Mr. Eric Oei, Chairman and Chief Executive Officer of HKE (HOLDINGS) said, "It is encouraging to see the first project being approved so smoothly and quickly following the formal establishment of HKE (HOLDINGS) in May 2008, reflecting HKE (HOLDINGS)'s ability to execute projects undertaken. We are confident that the development of our alternative energy business will be on track with our planned schedule and HKE (HOLDINGS) will continue to act as a strategic and effective platform for HKC (HOLDINGS) to execute its alternative energy projects in the years to come."
"HKC (HOLDINGS) has previously obtained the preferential right to develop a wind power project in Siziwang Qi. This further approval obtained by HKE (HOLDINGS) in the same area is sure to bring synergy for developing its alternative energy business, and also kick starts many opportunities, leading to the increased revenue and income growth for the Company ahead." Mr. Oei continued.
The Inner Mongolia Autonomous Region is one of the regions in the PRC with abundant wind energy resources, particularly in the Siziwang Qi region. There the average annual wind speed reaches over 8.0m/second at a height of 60-70 metres and its average annual full-loaded equivalent operation hours exceeds 2,500, indicating a grade I wind farm according to a wind resources survey report.
About Hong Kong Energy (Holdings) Limited (stock code: 987)
Hong Kong Energy (Holdings) Limited is a wholly-owned subsidiary of HKC (Holdings) Limited (stock code: 190), acting as HKC (HOLDINGS)'s alternative energy business arm. Investment in three alternative energy projects have been initiated in April 2008 at the Lunaobao Wind Farm in Hebei, the Siziwang Qi Wind Farm in Inner Mongolia, and a pilot cellulosic ethanol project. One of the projects, the Siziwang Qi Wind Farm project, has already obtained formal approval from relevant PRC authorities in June 2008.
For more information, please visit the Group's website: http://www.hkenergy.com.hk
About HKC (Holdings) Limited (stock code: 190)
HKC (Holdings) Limited is principally engaged in property development and investment activities with a primary focus in the PRC. It is also one of the leading providers of alternative energy in the PRC. In October 2007, Cerberus Asia Capital Management, LLC has become the Group's second largest shareholder. In March 2008, the Group acquired 74.99% interest in J.I.C. Technology Company Limited (SEHK: 987), and renamed it to Hong Kong Energy (Holdings) Limited, all new investments in the alternative energy business will be conducted through HKE (HOLDINGS).
For more information, please visit the Group's website: http://www.hkcholdings.com.
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